Setting science-based targets: A guide for electric utilities

In today’s climate emergency, all companies need to reduce their greenhouse gas (GHG) emissions to limit global warming to 1.5°C.

The power sector has a crucial role to play in decarbonizing our economy. Electric utilities are responsible for 41% of global energy-related CO₂ emissions (2017) and decarbonized electricity is an essential lever to enabling the low-carbon transition of other sectors, such as buildings and transport.

This guide supports more electric utility companies to overcome the challenges they face and set their own science-based targets (SBTs) to accelerate the transition to a zero-carbon economy. Challenges utilities face setting and achieving SBTs include the need to ensure a just transition away from coal or other carbon-intensive power generation; developing a robust understanding of emissions from their value chain; and abating certain sources of value chain emissions.

The guide also reviews the Science-Based Targets Initiative’s (SBTi) latest scenario for the power sector to set SBTs.

Companies who can set and achieve SBTs will mitigate climate risks across their operations and supply chain, boost shareholder and investor confidence and improve their license to operate in a decarbonizing global economy.